Hong Kong Exchanges and Clearing Limited said on Wednesday it has made a proposal to the board of London Stock Exchange Group Plc to combine the ...
LONDON: Hong Kong Exchanges and Clearing has made an unsolicited US$39 billion takeover approach for the London Stock Exchange , a proposal contingent on the LSE ditching its acquisition of data company Refinitiv.
The approach by the Hong Kong company comes as Britain is set to leave the European Union, a step some politicians fear could weaken its status as a major financial center.HKEX, which already has a base in London as owner of the London Metal Exchange, said it had played a key role in underpinning the City of London's position as a pre-eminent global center for metals trading.
"It looks uncertain whether shareholders will accept the offer, given that the Refinitiv deal is popular across the shareholder base for its potential to transform the business and add value over the long-term," said Guy de Blonay, a fund manager at Jupiter, a top-25 investor in the LSE. "This is not helpful. As a financial center, trust and confidence are important," HKEX boss Charles Li said of the protests last month, when HKEX reported a 21per cent fall in trading fees in the first half of the year.
"HKEX bought LME a few years ago to have a presence in the UK already, but clearly they are trying to diversify away from their Chinese exposure, which is why they are bidding now and not nine months ago," he said.A successful Hong Kong bid for the LSE would sabotage Blackstone's lucrative deal to sell Refinitiv. It would also scupper plans to refinance some US$13.
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